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Keywords：BSD、ABSD、SSD、Lease Duty、Share Duty

 

 

In Singapore, activities such as purchasing a property, renting a property, or transferring company shares may trigger Stamp Duty. Stamp Duty is administered by the Inland Revenue Authority of Singapore (IRAS) and applies to property transactions, lease agreements, and share transfers. Gaining a clear understanding of the applicable scenarios and calculation methods of Singapore’s Stamp Duty helps both businesses and individuals reduce costs and avoid risks in property transactions or equity arrangements.

What is Stamp Duty?

 

 

Stamp Duty is a tax levied on any chargeable documents related to real estate or any stocks and shares in Singapore, rather than directly on the assets themselves.

• Any documents signed in Singapore related to the following transactions may trigger Stamp Duty:
• Property transactions: purchasing, exchanging, or disposing of property;
• Lease agreements: rental contracts for residential or commercial spaces;
• Stock/share transfers: company share transfers, changes in shareholder ownership, etc.

 

Overview of Main Types and Rates

 

 

Buyer’s Stamp Duty (BSD)

BSD is levied on the higher of the purchase price or market value of the property.

Effective from 15 February 2023:

• Residential properties: Maximum rate 6%
• Non-residential properties: Maximum rate 5%

 

 

*BSD is rounded to the nearest whole dollar, with a minimum payable amount of S$1.

Additional Buyer’s Stamp Duty (ABSD)
ABSD applies to Singapore citizens purchasing their second or subsequent residential property, permanent residents, and foreigners buying residential properties.
ABSD is calculated based on the higher of the purchase price or market value of the residential property.

From 9 May 2022, the transfer of any residential property to a living trust will be subject to the same ABSD rates applicable to entities.

Seller’s Stamp Duty (SSD)

1、Seller’s Residential Property Stamp Duty

SSD is calculated by applying the applicable SSD rates to the higher of the sale price or market value of the residential property as at the date of sale or disposal. If portions of the residential property were acquired by the seller at different times, the holding period for each portion will be calculated separately from its respective acquisition date.

If the sale or disposal involves only partial interest in the residential property, the SSD payable will be based on the higher of the sale price or market value of that partial interest. The SSD rates applicable to residential properties acquired on or after 4 July 2025 and disposed of within the specified holding periods are summarized in the table below:

The Ministry of National Development (MND) of Singapore recently announced that, in response to the rising trend of short-term resales of private residential properties in recent years, the holding period for Seller’s Stamp Duty (SSD) will be extended from 3 years to 4 years. Effective from 4 July 2025, for private residential properties acquired on or after that date, SSD will be payable according to the table above if the property is resold within 4 years; no SSD will be payable if held for more than 4 years.

For investors, a longer holding period will become the norm. With the holding period extended to over 4 years, opportunities for short-term arbitrage are reduced, and long-term investment calculations need to be reassessed. Greater emphasis must be placed on long-term returns and asset allocation strategies.

Therefore, when planning property transactions, investors should evaluate the stamp duty costs and holding period in advance. This is particularly important for buyers expecting to hold for less than 4 years, to avoid additional SSD liabilities from early disposal.

2、 Seller’s Stamp Duty on Industrial Property

SSD is calculated by applying the applicable SSD rates to the higher of the sale price or the market value of the industrial property as at the date of sale or disposal. If portions of the industrial property were acquired by the seller at different times, the holding period for each portion will be calculated separately from its respective acquisition date.

If the sale or disposal involves only partial interest in the industrial property, the SSD payable will be based on the higher of the sale price or market value of that partial interest. The SSD rates applicable to industrial properties acquired on or after 12 January 2013 and disposed of within the specified holding periods are summarized in the table below:

Lease Stamp Duty (LSD)

Lease duty is calculated based on the higher of the contract rent or the market rent.

Lease duty is rounded down to the nearest whole number, with a minimum duty of SGD 1.

Share Stamp Duty(SSD)

Taxable documents involving share transfers include the following in either paper or electronic form:

1.Share Sale and Purchase Agreements (such as Sale Agreements) and transfer instruments

These are the documents executed when purchasing or acquiring shares. Stamp duty is payable based on the higher of the actual purchase price of the shares or the Net Asset Value (NAV).

The standard stamp duty rate for share transfers is 0.2%.

Stamp duty may be triggered for share transfers regardless of whether the company is profitable or whether the shares are scripless.

Items a and b must be electronically stamped with IRAS or submitted for remission application. Where applicable, the relevant duties are still payable on the executed share transfer instrument.

2、Share Pledge

These are the documents executed when you pledge shares to a bank or financial institution to obtain a loan. Stamp duty is payable based on the loan amount.

3、Who pays the stamp duty?
If the terms of a document do not specify who is responsible for paying the stamp duty, the liability to pay stamp duty will be determined in accordance with the Stamp Duties Act.

When is stamp duty payable?

 

 

Documents must be stamped before execution. No penalties will be imposed if the document is executed and stamped within the following timeframes:

If the document is executed in Singapore: it must be stamped within 14 days of execution;

If the document is executed overseas: it must be stamped in Singapore within 30 days of receipt.

For electronic documents, they are considered received in Singapore in any of the following circumstances:

(a) the electronic document is retrieved or accessed by a person in Singapore;

(b) the electronic document is stored on a device (including a computer) and brought into Singapore;

(c) the electronic document is stored on a computer located in Singapore.

What are the ways to pay stamp duty? 

 

 

Through the IRAS e-Stamping Portal, you can:

• e-Stamp your documents;
• Pay additional stamp duty;
• Obtain stamp duty payment certificates;
• Amend stamp duty payment certificates;
• Apply for stamp duty refunds;
• Seek rulings or appeals;

Alternatively, you can also use:

• Service Bureaus: counter services for those without Singpass/CorpPass or who require manual assistance;
• IRAS e-Terminals: on-site self-service terminals for direct e-Stamping.

 

Which documents are eligible for stamp duty exemption?

 

 

The following documents are exempt from stamp duty under Section 36 of the Stamp Duties Act:

• Any document executed by the Government of Singapore (not applicable to statutory boards and companies owned by the Singapore Government), and documents for which the Government is liable to pay stamp duty;
• Any documents relating to the sale, transfer, lease, or mortgage of property located outside Singapore;
• Share transfer documents involving companies incorporated overseas (foreign companies), where the transfer is registered in the overseas shareholder register;
• Documents executed by, on behalf of, or for the benefit of cooperatives registered under the Cooperative Societies Act, where the matters relate entirely to the cooperative’s business and the cooperative assumes liability for the stamp duty;
• Securities allotment, transfer, or transaction documents processed by the Monetary Authority of Singapore (MAS) under the Exchange Control Act;
• Documents relating to land acquisition under the Land Acquisition Act;
• Transfer documents under Sections 125 or 126 of the Land Titles Act (applicable to transfers for applying for subsidiary strata titles);
• Estate documents benefiting bankrupts or official assignees;
• Lease agreements signed on or after 1 June 2012, applicable to tenants renting directly from the Housing & Development Board (HDB) under the Public Rental Scheme.

Whether a document qualifies for exemption in practice is subject to the final determination by IRAS.

To confirm exemption eligibility, it is advisable to submit an adjudication request to IRAS in advance.